Dhir & Dhir Associates advised REC and IREDA on Suzlon Group refinancing
The loan amounted to approximately Rs.4,053 crores
Dhir & Dhir Associates advised REC and IREDA on Suzlon Group refinancing The loan amounted to approximately Rs. 4,053 crores Dhir & Dhir Associates have advised the Lenders, REC Limited and Indian Renewable Energy Development Agency (IREDA), on the sanction and disbursement of term loan to Suzlon Energy Limited and its subsidiaries. After the disbursement of the said...
Dhir & Dhir Associates advised REC and IREDA on Suzlon Group refinancing
The loan amounted to approximately Rs. 4,053 crores
Dhir & Dhir Associates have advised the Lenders, REC Limited and Indian Renewable Energy Development Agency (IREDA), on the sanction and disbursement of term loan to Suzlon Energy Limited and its subsidiaries.
After the disbursement of the said facility, REC and IREDA have substituted a consortium of sixteen lenders, led by the State Bank of India.
Pertaining to the transaction, in its role as the Lenders' Legal Counsel, Dhir & Dhir carried out legal due diligence of the Borrower Group. It drafted and negotiated the financing and security documents, and provided legal advice on crucial matters.
Alok Dhir, the Founder & Managing Partner at Dhir & Dhir Associates, said, "Our practice over the years gives us an edge, since we acknowledge the fact that an equilibrium needs to be maintained vis-a-vis the requirements of the lenders and the commercial flexibility sought by the borrowers. Closing complicated transactions becomes easy when this understanding is achieved without compromising the sanctity of the transaction."
Due to the sensitive and critical nature of the transaction, numerous complex issues arose. But after much deliberation, they were resolved in a manner that was fair to the parties and also to the spirit of financing.
Purusharth Singh, the Partner at Dhir & Dhir Associates, who led the transaction as Lenders' Counsel, remarked, "Such transactions come laden with legal and commercial challenges. We are equipped to tactfully deal with the intricacies involved since we have a deep appreciation for the far-reaching implications which such high-stake transactions, involving public money, can have on all stakeholders, especially institutions like REC and IREDA."
The core team at Dhir & Dhir Associates, representing the New Lenders, comprised Purusharth Singh (Partner), Humera Niyazi (Senior Associate), Nikhil Gupta (Associate), Anurag Mawai (Associate), and Raman Choudhry (Associate).
The Borrower Group was led by their General Counsel Anoop Khatry, who negotiated the transaction documents for closure.